Oil stable as Iran concerns ease

LONDON, Feb 09 (Reuters): Oil prices were stable on Monday after the US and Iran pledged to continue indirect talks, easing oil supply fears, but India stepping away from Russian purchases gave prices a floor and global stock markets rallied. .

Brent crude oil futures were up 6 cents, or 0.1 per cent, at $68.11 a barrel by 1304 GMT, while US West Texas Intermediate crude rose 5 cents, or 0.1 per cent, to $63.60.

Last week Brent and WTI fell more than 3 per cent and 2 per cent respectively, their first decline in seven weeks, as Iran tensions eased amid a broader market selloff led by equities, which often move in tandem with oil prices.

Iran and the US pledged to continue talks after what both sides described as positive discussions. That eased concerns that a failure to reach a deal might nudge the Middle East closer to war, as the US has positioned more military forces in the area.

About a fifth of the oil consumed globally passes through the Strait of Hormuz between Oman and Iran.

However, Iran's foreign minister said the country will strike US bases in the Middle East if attacked by US forces.

"The Iranian risk premium cannot be fully defused as long as US warships are located where they are," said SEB analyst Bjarne Schieldrop.

Investors are also grappling with Western efforts to curb Russia's income from oil exports that support its war in Ukraine.